The retirement years are meant to be enjoyed and savored, but a divorce could disrupt those plans for tranquility. Divorcing California couples -- particularly those who are near retirement -- may feel the side effects on their retirement the most. Paying careful attention during property division and other important divorce processes can help these individuals protect their retirement savings as well as their financial security.
You probably already have an idea of the type of people who use prenuptial agreements -- wealthy and perhaps not totally committed to their future nuptials. Unfortunately, this long-standing stereotype makes it difficult for the average person in California to fully grasp the true benefits of a prenup. Whether addressing concerns about property division or protecting yourself from your partner's debt, a prenup is an invaluable tool from which virtually anyone can benefit.
Owning a pet is about so much more than simply feeding an animal. For most people in California, pet ownership means treating an animal like another valued member of the family. Unfortunately for most pet parents, this familial bond has not always translated well during divorce, putting beloved animals in the middle of heated property division disputes. Now, a new California law aims to help these individuals handle things more easily.
There are a million little tiny decisions that go into planning a wedding. However, even if a couple already has an ideal venue in mind or the perfect flowers, nothing can really fall into place until they settle on one, important thing -- the date. California couples usually take a wide range of factors into account when picking that perfect date, but a new study indicates that one factor could be setting people on a path toward divorce and property division.
Planning for an upcoming wedding is an overwhelming ordeal. California couples spend hours upon hours selecting the right venue, picking the perfect date, sending out invitations and planning every last detail of their perfect day. Few, however, look ahead to something else they may want to plan for -- property division in the event of a divorce down the line. Although prenuptial agreements may feel distinctly unromantic, having one can help couples who must later traverse through the emotionally-fraught divorce process.
A divorce late in life for some seniors means that, after many years together, they have grown apart from their spouses and decided to move on alone. While the split may be amicable, both sides need to understand the importance of property division during the divorce. Older couples in California and other states should consult with an attorney and financial consultant to understand the specific rules for dividing assets.
IRA accounts have become a huge bargaining chip in divorce settlements, but what about IRAs received in an inheritance from a family member? Considering the new tax laws that go into effect in 2019, pretax funds from IRAs could be used to make up for tax deductions in a divorce settlement. Residents in California and other states have used inherited IRA accounts to satisfy property division in a divorce.
Some couples who divorce later in life can run the risk of endangering retirement for themselves. Studies show that divorces among young people are less common, but for those 50 and older, the rate has nearly doubled, and it has nearly tripled for those 65 and older. In California and other states, the property division of 401(k) accounts, IRA’s and pensions can potentially come with healthy associated costs during a gray divorce. So planning ahead and carefully proceeding through this period could prove invaluable to one’s future best interests.
An MGM mogul who passed away in 2015 donated the bulk of his estate to assorted charitable organizations. Worth several billion dollars, the estate was to be dispersed within three years of the mogul's death. However, the fallout from the man's past love life and four marriages are keeping the estate hanging in limbo. In California, it may fall upon the courts and a judge to determine the property division of the estate.
Statistics show that married couples are in debt with mortgages, cars, credit cards and student loans. Owing money is hard enough to cope with when all is well on the home front, but things can turn ugly fast during a divorce. In California, couples will need to discuss asset and property division, including how to separate debts.